Mercer's latest cost of living report has revealed the most expensive and the most affordable cities for expats. This year Asian cities took the most places in the top ten most expensive cities, along with several European cities. However, some of the cheapest cities can also be found in Europe and Asia. The rankings were assessed as per the cost of living for an expat working abroad.
Europe
Zurich previously featured at number three in the Economist Intelligence Unit (EIU) ranking of the most expensive cities, comes in fourth. Though it has the highest disposable income as per Deutsche Bank's rankings, this is a necessity given the high cost of living. Geneva is in at number seven (the same as its EIU ranking), and Bern is ranked at number 10. With three cities in the top ten, Switzerland is one of the most expensive countries in the world for expats. However, both Zurich and Geneva feature in the top ten for quality living — it seems this comes at a price.
London is a popular expat destination and has previously been ranked as the world's top financial capital, as well as the third best city for startups. Though it is regarded as one of the most expensive cities mainly due to high rent prices, it is ranked 30th for overall cost of living. Despite Moscow not being regarded as a notably expensive city, it is sixteen places higher than London in the 14th place.
For expats looking to move to Europe, Germany has several comparably affordable cities, with Frankfurt at 117th , Berlin at 120th and Dusseldorf at 122nd, to name a few. Given that Berlin also featured in the top ten cities for startups, it seems to be an ideal destination for the budding entrepreneur. Furthermore, several German cities (including Dusseldorf and Frankfurt) are in the top ten for the quality of life, while Berlin came in 13th. What is there not to like?
Other cities that are more affordable include Prague (132) and Budapest (176). Featuring in the bottom ten with the lowest cost of living are Minsk at 200th and Sarajevo coming in 202nd.
Asia Pacific
Honk Kong is in second place — same as in the Economist report. Tokyo is in third place, with Singapore, Seoul and Shanghai in fifth, sixth and eighth place, respectively. Shanghai and Singapore have previously been ranked as the eighth and 12th best cities to launch your startup, so entrepreneurs heading to Asia should keep this in mind. According to GFCI rankings, Singapore is the world's third most significant financial capital, with Hong Kong in fourth and Tokyo in fifth, for those moving to work abroad in the financial sector.
Expats hoping to move to Australia will be pleased to discover that no Australian cities featured in the top twenty, with Sydney and Melbourne at 25th and 46th, respectively. However, Sydney sits just outside the top ten most important financial cities, so it certainly is a destination where you can further your career.
As an emerging economic force, more expats are looking to India; particularly for work. Those moving to India for work will be pleased to find out that Mumbai is on 57th and New Delhi is only the 99th most expensive city. However, both have risen over twenty places, so it is conceivable that the cost of living will continue to increase.
Africa
A somewhat surprising entry at number one as the most expensive city for expats is the Angolan capital of Luanda. Around half of the population lives in poverty, with basic food stuff costing an inordinate amount of money due to imported goods being subject to high tariffs. Accommodation in expat areas is also sky high, due to the level of demand compared with availability.
Similarly, Kinshasa (capital of the DRC) is in 18th for the cost of living as an expat working abroad, which may seem disproportionate given the lack of wealth within the country itself. However, following years of strife and civil war, the resource-rich country suffers from a similar issue of high import prices and a lack of infrastructure that makes existing good quality housing more expensive.
The Americas
New York City was the most expensive American city, coming in at number nine (having moved up two places), followed by San Francisco in 22nd place and Los Angeles at 24th. With Silicon Valley holding the number one spot for startups and New York City being ranked as the second most significant finance centre in the world, the US certainly has the potential for anyone looking to further their career or start their own enterprise. However, a more affordable cost of living for expats working abroad is an option in the US, with Portland, for example, in 115th. North of the border in Canada, Toronto is ranked 119th and Vancouver has seen itself move up 35 spots to 107th place.
South America also offers a range when it comes to cost of living. São Paulo in Brazil is 27th, and Buenos Aires in Argentina features at 56th. At the bottom end of the rankings offering the cheapest cost of living to expats working abroad is Monterrey in Mexico in 203rd place.
Middle East
The Middle East has become an increasingly popular destination as multinationals have set up regional hubs in one of its many skyscraper-filled cities. The most expensive city in the region is the sixth best startup city and innovation centre, Tel Aviv coming in 17th. This is closely followed by the incredibly popular expat destination, Dubai in 20th. Dubai is popular with large corporations and employees may be sent there to work at regional head offices. 23rd place Abu Dhabi is similarly popular, however, other popular cities in the region such as Doha and Jeddah appear lower in the rankings at 81st and 117th, respectively.
